As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed countless market cycles and trends that have shaped the industry as we know it today. The recent outflows from BlackRock’s Bitcoin Trust (IBIT) might seem concerning to some, but I believe these are temporary blips rather than a harbinger of doom for Bitcoin.
The sheer volume of inflows into IBIT in 2024, making it the third-largest ETF among all U.S. funds, speaks volumes about the growing interest and confidence in digital assets. Moreover, the resilience shown by other players like Bitwise, Fidelity, and Ark 21Shares is a testament to the fact that Bitcoin’s future remains bright.
When it comes to Ether, I wouldn’t be surprised if we see similar trends. The outflows on Dec. 2 could be seen as a correction rather than a long-term shift in sentiment. With Nate Geraci’s predictions for 2025, we might even see the advent of combined spot BTC and ETH ETFs, options trading for spot ETH ETFs, and in-kind creation and redemption mechanisms for both Bitcoin and Ethereum spot ETFs.
In a lighter vein, one can’t help but chuckle at Geraci’s confident statement, “These will all happen.” If history has taught us anything, it’s that the financial markets are full of surprises, and nothing is ever guaranteed. But I must admit, his confidence is infectious, and I find myself hoping he’s right! After all, who wouldn’t want to witness a combined BTC-ETH ETF or options trading for spot ETH ETFs? It would indeed be an exciting time for the crypto space!
On January 2nd, BlackRock’s iShares Bitcoin Trust (IBIT) saw its largest one-day withdrawal, as a total of 12 Bitcoin exchange-traded funds collectively experienced an outflow of approximately $242.3 million when trading resumed in the U.S., indicating investors are withdrawing their money from these funds.
As an analyst, I’ve observed a significant movement in the BlackRock’s spot BTC ETF market based on data from SoSoValue. On a particular Thursday, this ETF experienced its largest-ever outflow day since its launch on January 11, 2024, with a total of $332.62 million exiting the fund.
Over the past three days, the Bitcoin Exchange-Traded Fund (ETF) has continued to experience withdrawals, reaching a new record with approximately $392.6 million being taken out of the fund.
Despite some recent outflows, BlackRock’s IBIT has shown resilience, as it was the third-highest inflow recipient among all U.S. ETFs in 2024, with a substantial sum of $37.2 billion. This follows closely behind the Vanguard 500 Index Fund (VOO), which saw an impressive $116 billion, and the iShares Core S&P 500 ETF (IVV) with $89 billion, as reported by Bloomberg analyst Eric Balchunas in his January 2 post.
On January 2nd, while BlackRock’s IBIT fund saw considerable withdrawals, Bitwise’s BITB, Fidelity’s FBTC, and Ark 21Shares’s ARKB all recorded inflows, attracting approximately $48.31 million, $36.2 million, and $16.54 million respectively.
Or in a more conversational tone:
On the same day (January 2nd), BlackRock’s IBIT fund lost money as people took their funds out, but Bitwise’s BITB, Fidelity’s FBTC, and Ark 21Shares’s ARKB all managed to bring in new investments totaling around $48.31 million, $36.2 million, and $16.54 million respectively.
Additionally, the Grayscale Bitcoin Mini Trust and VanEck’s HODL experienced modest investments totaling $6.89 million and $5.51 million respectively, but Grayscale’s larger GBTC fund experienced an outflow of $23.13 million.
As an analyst, I’d note that the daily trading volume for these investment products reached a staggering $3.24 billion on January 2nd – a noticeable increase from the $2.25 billion recorded the day prior. At the moment of this report, Bitcoin (BTC) was experiencing a 2% growth over the last 24 hours, with each coin being traded at approximately $96,893.
Ether ETFs flip to outflows
On December 2nd, a total of $77.51 million was withdrawn from the nine spot Ether Exchange-Traded Funds (ETFs). This withdrawal was primarily due to funds leaving Bitwise’s ETHW and Grayscale’s ETHE, with $56.11 million and $21.4 million exiting each respectively.
The remaining seven ETH ETFs remained still on the day.
Ethereum (ETH) was also up 1.7% over the past day trading at $3,458 per coin.
On January 2nd, Nate Geraci, president of ETF Store, expressed his forecasts regarding crypto ETFs by the year 2025. He envisioned the debut of composite Bitcoin (BTC) and Ethereum (ETH) ETFs, the initiation of options trading for ETH spot ETFs, and the adoption of in-kind creation and redemption processes for both BTC and ETH spot ETFs.
Furthermore, he predicted that staking capabilities would be added to Ethereum’s spot funds and a Solana (SOL) Spot Exchange-Traded Fund (ETF) would receive approval. With certainty, Geraci declared, “In reality, all of this is going to occur.
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2025-01-03 10:21